Invo Bioscience (OTC:IVOB), where employees deferred their salaries last year to keep the company afloat, has a new deal in place to drum up nearly $3 million.
Under the terms of a deal with AGS Capital Group LLC, the Beverly, Mass.-based infertility treatment device maker can sell up to $10 million worth of its own stock, according to company documents and securities filings.
In a letter to stakeholders, CEO Kathleen Karloff said (PDF) Invo inked the reserve equity financing deal with AGS in late October. The company registered 8.79 million shares at $0.32 each for the first drawdown of the agreement, according to a filing with the Securities & Exchange Commission. Shares were trading at $0.23 as of the close of trading Dec. 21.
Invo makes the Invocell, a small capsule used to incubate eggs and sperm as an alternative to conventional infertility treatments. The company posted sales of $56,298 during the nine months ended Sept. 30, compared with zero during the same period last year. Net losses for the period widened to $4.5 million, compared with $668,573 during the first nine months of 2008.
For 2010, the company predicted sales of between $433,000 and $671,000.